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ANALYZING LEASE VS. BUY DECISIONS
Essay specific features
Written by:
Claire W
Date added:
November 20, 2015
Level:
Grade:
B
No of pages / words:
5 / 1143
Was viewed:
6936 times
Rating of current essay:
Essay content:
In order to run advanced analytical software for the preparation of the drug, it needs to acquire mainframe computer. Now the decision needs to be taken to either lease or buy the mainframe computer.
It is best to lease the mainframe computer for 18 months instead of buying it. The reason being is that the loan options were proposing significantly higher outflows and the leasing option of 18 month with no money down proposed the lowest present value of the cash outflows of the duration...
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Since Bonnesante is not a profitable company, the expenses for buying an asset will not be tax deductible, and loaning option will also require to record the transaction and corresponding liability on the balance sheet. But through the lease option, an asset will not need to be reported on balance sheet...
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